FedEx “advancement fee” for import duty

[Riley Blue]

Fastdruid said:

Oh and just to add. If all international couriers needed to charge it... Why don't DHL?

Compare and contrast.

FedEx - Parcel delivered, receive Posted Invoice for Duty + "Advancement fee"
Royal Mail - Parcel delayed, receive Posted Invoice for Duty + "Advancement fee". Parcel released once paid.
DHL - txt received while item is in transit (before it arrives in the country) with the duty due. Online payment (of duty only). Item turns up a few days later.

DHL call it 'Advance Payment / Disbursement'.

From their website:

Why do I have to pay Duty and VAT charges and Advance Payment / Disbursement?
We will not be able to deliver your goods to you until we have paid the Duty and VAT charges on your behalf. Some businesses have their own Deferment accounts with HM Revenue & Customs and we merely arrange for their account to be directly debited by Customs. Many other importers, particularly private consumers, do not have an account with Customs. We must therefore pay the charges on your behalf before we can deliver your goods to you. An Advance Payment or Disbursement will be added to your Duty and VAT statement / invoice for clearing the shipment through customs on DHL’s Deferment account.

[Nickyboy]

DHL do charge it because i've paid it a number of times in the past. The way they charge it or add it to the total may be different however.

As for you continually saying Fed-Ex seem "surprised" by customs charges, you're ignoring what i've said about them charging for a service, they specifically employ staff to process the customs paperwork, invoices have to be scanned, imaged and sent to brokerage even before the parcel reaches the airport, it has to be done this way so that the parcel is cleared by the time it arrives so it makes it's deadline.

It's convenience that's all, years ago it would sit in a bonded warehouse for days awaiting customs paperwork and charges to be paid before release.

[Fastdruid]

Nickyboy said:

DHL do charge it because i've paid it a number of times in the past. The way they charge it or add it to the total may be different however.

As for you continually saying Fed-Ex seem "surprised" by customs charges, you're ignoring what i've said about them charging for a service, they specifically employ staff to process the customs paperwork, invoices have to be scanned, imaged and sent to brokerage even before the parcel reaches the airport, it has to be done this way so that the parcel is cleared by the time it arrives so it makes it's deadline.

It's convenience that's all, years ago it would sit in a bonded warehouse for days awaiting customs paperwork and charges to be paid before release.

You seem unable to grasp the fact that FedEx know when the item is *SHIPPED* that there will be duty due. Before its even paid for.

So yes, fine, they want an fee for processing the duty but that should be charged when the item is sent, *not* when it is received. That they don't is a dodgy practise to be able to offer lower fees up front and then sting private customers with additional charges that they cannot avoid. That every one does it does not make it right.

Once it's in the system the receiver after all is a captive market, they cannot go "Nah actually could you send it via a different shipper instead, I don't want to pay your advancement fee".

On the senders side it's cheaper so of course it makes it easier to sell so they have no incentive to avoid them either.

As for DHL, despite saying they charge, on the umpteen items I've received in the last year+ with duty due not one has had an fee for collecting duty. I just get a text message with "A shipment will shortly be delivered to you by DHL with Waybill number xxxxxx, A payment for importation charges is due for £x.xx. Payment should be made at www.dhl.co.uk/epayments. For an explanation of the charges see Receiver's Guide to Duties & Taxes on www.dhl.co.uk".

[a.lex]

Fastdruid said:

So yes, fine, they want an fee for processing the duty but that should be charged when the item is sent, *not* when it is received. That they don't is a dodgy practise to be able to offer lower fees up front and then sting private customers with additional charges that they cannot avoid. That every one does it does not make it right.

Do you know which party is legally responsible for customs and duties? The importer is, and always has been. So you want to shift the importer's obligations onto the sender because it's "unfair"? I'm sure we can put this unconscionable injustice at the top of the post-Brexit trade deal agenda if you like...

[Nickyboy]

Fastdruid said:

So yes, fine, they want an fee for processing the duty but that should be charged when the item is sent, *not* when it is received. That they don't is a dodgy practise to be able to offer lower fees up front and then sting private customers with additional charges that they cannot avoid. That every one does it does not make it right.

Once it's in the system the receiver after all is a captive market, they cannot go "Nah actually could you send it via a different shipper instead, I don't want to pay your advancement fee".

On the senders side it's cheaper so of course it makes it easier to sell so they have no incentive to avoid them either.

It's nothing to do with the sender though, all importation charges, duties, and VAT are the responsibility of the importer/receiver

Some shippers will cover any brokerage fees but that's up to them, i know of one in particular. All the international shipping companies charge something for doing it so you can't just switch to a different carrier,

and yes, DHL do charge and their charge is higher than everyone elses, 2.5% of the total amount over £440. As far as i'm aware all the other carriers charge a fixed fee. As to why you've not been charged by them i can't answer

DHL said:

Why do I have to pay Duty and VAT charges and Advance Payment / Disbursement?
We will not be able to deliver your goods to you until we have paid the Duty and VAT charges on your behalf. Some businesses have their own Deferment accounts with HM Revenue & Customs and we merely arrange for their account to be directly debited by Customs. Many other importers, particularly private consumers, do not have an account with Customs. We must therefore pay the charges on your behalf before we can deliver your goods to you. An Advance Payment or Disbursement will be added to your Duty and VAT statement / invoice for clearing the shipment through customs on DHL’s Deferment account.

How much is the Advance Payment / Disbursement I have to pay?
An amount of £11.00 or 2.5% of the total Duty and/or VAT incurred, whichever is the greater.

If the total Duty and/or VAT incurred is less than £440 then a flat amount of £11.00 will be incurred as this is less than 2.5%

For example:
If the total Duty and/or VAT amount equals £125.80, then £11.00 will apply.
The 2.5% will be incurred if the total duty and/or VAT is greater than £440.00. For example, if the total Duty and/or VAT amount equals £490.00 then an amount of 2.5% will apply i.e. £12.25.

Edited by Nickyboy on Thursday 18th January 22:44

[classicyanktanks]

Use rock auto all that bullst disappears.

[Sloan85]

Fastdruid said:

See here: http://blog.adamowen.co.uk/dont-pay-fedexs-customs...

I tried it and they waived the fee.

Like many I don't really like paying VAT, duty etc but those are the rules etc. The "Advancement fee" however charged by some really sticks in the craw and I would rather use another shipper than one that charges like this. Unfortunately many either don't offer the choice of shippers or only ever offer things like the super duper next day delivery from China option for the others rather than the same level of shipment.

Thanks. I used the template on the above link and they have waived their “fee” so just the VAT to pay.

[Camelot1971]

I don't get why people get so worked up about it. There is a cost to clear something through UK customs. The exporter doesn't care what those costs are as they are the responsibility of the importer.

If you don't want to pay for that service, arrange to pay duties and taxes directly with HMRC.

I've paid a fee to royal mail, UPS, DHL and FedEx. It's not a surprise and it's a lot cheaper than me going to the airport to sort It!

[Fastdruid]

Camelot1971 said:

I don't get why people get so worked up about it. There is a cost to clear something through UK customs. The exporter doesn't care what those costs are as they are the responsibility of the importer.

If you don't want to pay for that service, arrange to pay duties and taxes directly with HMRC.

I've paid a fee to royal mail, UPS, DHL and FedEx. It's not a surprise and it's a lot cheaper than me going to the airport to sort It!

As I've said. Its not there is a *charge* that annoys me. It's that it is charged as an add on to the receiver *after* the item has arrived in the country. If you are buying internationally its rare that you will have any say in which shipper is chosen.

That there will be a cost is **known** at the point of booking and could easily be added to the shipping amount (and thus still charged to the receiver) but by doing it this way the shippers can charge what they can get away with and quote low prices to get the business.

It's a scam, perpetuated because the people who it affects are the infrequent users who have no power, the senders have zero interest in changing things and any shipper that would buck the trend would be priced out of the market.

[catso]

Nickyboy said:

DHL do charge it because i've paid it a number of times in the past.

I had a DHL delivery and the driver wouldn't leave it without me paying the VAT, duty + their handling fee by cash or on-line/telephone (but whilst he was on my doorstep) - no advance warning or notification which would have been helpful.

Fedex on the other hand were happy to deliver something to my Son with no mention of any fees but then sent an invoice for the amount almost a month later.

Royal mail at least advise that they need the payment pre-delivery and make it easy to do online.

They're all robdogs though because they're already being paid to deliver/handle and I highly doubt it costs them anywhere near as much they charge in handling fees...

[surveyor]

I bought an item from amazon.con delivered from USA

The large box was with me with a couple of days, they included the estimated import duty with the initial cost, and have a few days ago refunded the £5 or so that they overestimated - with no request from me.

That is how it should be done.

[jeremyh1]

You must pay this fee then argue if you disagree

I am in this industry and I would say to anybody that FedEx UK charges are genuine and they are legitimate

It is dangerous not to pay in any circumstance as they charge £5 a day hold rent after a cirtain time
I know of a fool that argued over the vat on a pizza over for months and ended up paying £1200 in rent fees